As the lockdown ends, cycling looks set to do more than helping people to pass the time. On 9th May 2020, Grant Shapps, transport secretary, announced plans for a £250m emergency “active travel fund” to finance building of wider pavements for walking and new, segregated cycle tracks.
Addressing travel concerns with employees returning to work is a challenge. With public transport now the least favourite mode of transport and purchasing a vehicle an expensive option, cycling is really getting a boost.
There has been a surge in companies applying for the cycle to work scheme which makes it easier for staff to travel into work by bike as a means to support staff who would otherwise use car-sharing or public transport.
Companies who have implemented the cycle to work scheme have found some surprising benefits.
- PAYE tax & National Insurance Savings
- Save £1000s of pounds per year on public transport/vehicle running costs
- Save between 32% and 42% on the price of a new bike that you can use outside of work
- Cycling exercises every muscle to help keep fit
- Reduces likelihood of illness
- Reduces CO2 footprint by 600kg per person per year on average
- Reduce emissions yet still getting the team into work
- Reduce employers National Insurance as bike payments are deducted before Employers NI is due
- Save VAT as bikes can be treated as a business asset which allows you to reclaim it.
- Reduce Corporation tax as company bikes qualify for Annual Investment Allowance.
- Reduce sick days & improve concentration with fitter staff
- Attract better talent with more employee benefits
The infographic below highlights the advantages to both employee and employer when taking up the scheme: